Tax
Relationship Between Searched And Non-Searched Entity Not Mandatory For Invocation Of Proceedings U/S 153C Income Tax Act: Delhi High Court
The Delhi High Court has held that the statutory scheme of Sections 153A and 153C of the Income Tax Act, 1961 does not envisage the discovery of a connection or interrelationship between the searched and the non-searched entity.Section 153A deals with the procedure for assessment which may be set in motion in respect of an entity searched under Section 132 of the Act. Upon such a search...
“Completely Unacceptable”: Delhi High Court Pulls Up Customs For Prolonged Detention Of Export Goods Despite Dept's Circular
The Delhi High Court has criticised the Customs Department for acting against its own Circular for expeditious clearance of goods, by detaining the export goods of a trader for over two months.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta observed, “This position is completely unacceptable to the Court…consignment cannot be held up in this manner…expedited...
Delhi High Court Slams CBIC For Cryptic Order Denying Duty Drawbacks To Vedanta Despite Its Own Instructions Allowing Retrospective Benefit
The Delhi High Court has asked the Central Board of Indirect Taxes and Customs to pass a “reasoned order” on Indian multinational mining company- Vedanata's plea claiming duty drawbacks on clean energy cess, paid between the year 2010-17.The plea was rejected by CBIC through a “cryptic order” citing limitation despite its own Instruction clearing air on eligibility of drawbacks on...
Student Almanac And Teacher Planner Not Exigible To Excise Duty: CESTAT
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that Student Almanac and teacher planner not exigible to excise duty. The Bench of Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) has observed that the submission of the assessee that since Student Almanac is used only by students of a particular school, it becomes...
Non-Payment Of Service Tax By Sub-Contractor Due To Uncertainity Not Wilful Misstatement Or Fraud: Delhi HC Upholds CESTAT Order
The Delhi High Court has upheld an order of the Customs Excise and Service Tax Appellate Tribunal interdicting the GST Department from invoking extended period of limitation for recovery action against a sub-contractor who did not pay service tax amid confusion as to his liability to pay the same.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta upheld the CESTAT order...
ITAT Exempts Tax On ₹1.5 Crore Granted By BCCI To Kapil Dev In Recognition Of His Services To Cricket
The Income Tax Appellate Tribunal at Delhi allowed renowned cricketer Kapil Dev to claim exemption on Rs. 1.5 crore one-time benefit granted to him by the BCCI in 2013, in recognition of his services.Noting that the cricketer had offered the amount for tax under ignorance, bench of M. Balaganesh (Accountant Member) and MS Madhumita Roy (Judicial Member) said,“It is trite law that right...
Supreme Court Issues Notice In Challenge To West Bengal Taxes On Entry Of Goods Act
The Supreme Court is set to examine the constitutional validity of the West Bengal Taxes on Entry of Goods into the Local Areas Act, 2012, as amended by the West Bengal Finance Act, 2017, along with related Rules and notifications.A bench of Justice JB Pardiwala and Justice R Mahadevan recently issued notice returnable on April 22, 2025 in a batch of petitions challenging the...
Customs Can Clone Data Of Seized Electronic Devices As Per Statutory Procedure, Need Not Retain Devices Throughout Prosecution: Delhi HC
The Delhi High Court has called upon the Customs Department to clone the required data from seized electronic devices of persons allegedly involved in smuggling and other violations under the Act, instead of retaining such devices throughout prosecutions.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta observed that such a practice will not only ensure that the...
Supreme Court Directs Customs Authorities To Upgrade Lab Facilities For Proper Testing Of Disputed Articles On All Parameters
In a key decision, the Supreme Court today overturned the confiscation of imported goods labelled as "Base Oil SN 50," which customs authorities had classified as High-Speed Diesel (HSD), which only the State entities can import. The Court found that the Customs Department failed to provide conclusive evidence proving the goods were High-Speed Diesel (HSD), due to inadequate laboratory...
Order Restraining Revenue From Taking Coercive Steps For Recovery Of Demand Can Interdict Adjustment Of Refunds: Delhi HC
The Delhi High Court has held that when an appellate authority has asked the Income Tax Department to not take any coercive steps against an assessee for recovery of outstanding demands, the same can in some cases interdict the Department from adjusting the outstanding amount from refunds due to the assessee.A division bench of Justices Vibhu Bakhru and Tejas Karia took note of a Punjab...
S.110 Customs Act | SCN Cannot Be Issued After One Year, Detention Of Goods Impermissible: Delhi High Court
The Delhi High Court has held that detention of goods by the Customs Department cannot continue beyond a period of one year, if a show cause notice was not issued to the assessee within such period.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta cited Section 110 of the Customs Act, 1962 which prescribes a period of six months. Further, subject to complying with...
Can GST Act Timelines Be Relaxed For Bonafide Errors? Supreme Court Appoints Amicus Curiae, Issues Notice To CBIC
The Supreme Court recently issued notice to the Central Board of Indirect Taxes and Customs (CBIC) over the recurrent issue of not allowing rectification of bonafide errors made after the lapse of prescribed deadlines under the CGST Act. The bench of CJI Sanjiv Khanna and Justices Sanjay Kumar and KV Viswanathan was hearing a challenge by the Union against the decision of the Bombay High...